The house looks very nice. The problem with size is that the dog will be unable to use its body heat to keep himself warm in a large house. Straw should make that ok though. And if the dog is only outside in the day time, you may be perfectly ok anyhow. If the dog is ever out at night though, a generous amount of bedding will be required for the dog to burrow in a large house like that, to keep himself warm, depending also where you are. If you are in the southern states, you may be perfectly fine with no bedding all winter long.
Sometimes outdoor dogs do heck of a lot better than indoor dogs with fewer issues, and are easier to train. Not being stuck in a crate for endless hours, they are not exploding with energy, and settle right down in class and usually are at the top of their classes. There is NOTHING in my house that my dogs need when I am not there. Their kennels are safe, they are roomy, they cannot get into anything they shouldn't and they can drink and relieve themselves.